Health Insurance Awards

As from today the voting is open for the Health Insurance and Protection magazine's yearly Health Insurance Awards. The event is being held on Thursday, October 22nd and all intermediaries who are involved in the medical insurance and protection industry can vote for the providers that they consider notable.

Voters are asked to consider:

'product range, service, marketing and promotional activities to intermediaries. Please also consider how companies have supported the independent intermediary sector. This could be in terms of training, technology or intermediary support services.'

Last year the former chief executive of Bupa, Val Gooding, won the Health Insurance Personality of the Year for her outstanding contribution to the UK's independent healthcare sector at home and abroad.

PruHealth won the Best Individual Private Medical Insurance Provider category, this was the third year in a row that it received the award despite the fact that it is only four years old. Norwich Union Healthcare won in the Best Group Private Medical Insurance Provider category.

Intermediaries are also recognised during the evening. They are voted on by a panel of industry experts. Last year Michael Payne from the Advo Group won best Individual Private Medical Insurance Intermediary.

Product Focus: Freedom Healthnet

Health Insurance News UK provides you with up to date health insurance news including information on the cheapest health insurance available. Today we will be focusing on Freedom Healthnet (who consistently come up on searches as cheap medical insurance providers) and looking at their best medical insurance policy, Diamond Plus Comprehensive Medical Insurance.

The most interesting aspect off all Freedom's medical insurance policies is that they offer you cash and instead of paying for inpatient treatments themselves, you arrange to pay for your own treatment. With this cash you have more freedom to choose:

Choose exactly where you have treatment (this could include overseas),
Choose who performs the procedures
Choose to be treated by alternative therapists
Choose to stay with the NHS and keep the cash
Choose a time of your convenience
Choose to barter over the cost of your treatment

The Diamond Plus Comprehensive Medical Insurance is Freedom's top product.

In-Patient Annual Benefit
There is no annual benefit limit with this policy. So no matter how often you need to be seen, you will be covered. The policy covers you for:

-hospital charges, nursing fees, medical expenses, ancillary charges and prescribed drugs and medicines
-CT scans, tests, X-rays and MRIs
-Oncology tests, drugs, consultants fees
-Pregnancy complications (after 11 months of cover)
-Physiotherapy

The cover also includes the use of a private ambulance should it be needed and parent accommodation for an insured dependent child until the age of 14. This is particularly important if you wish to travel to a better hospital which may not be near your home.

Out-Patient Cover
The same applies to out-patient cover: there is no annual limit. Outpatient treatments are normally settled directly to the hospital by Freedom. Things covered are:

-Specialist consultations and treatment fees
-X-rays, diagnostic tests and proceedures, pathology
-Radio and chemotherapy, CT scans, MRI
-Up to £500 of physiotherapy treatment

The Diamond Plus policy can be upgraded with a choice of three add-on options:

Choice 1: Alternative Therapies
-GP referrals to - physiotherapists (an additional £500 on top of your outpatient physiotherapy cover), osteopath, Chiropractor, Acupuncturist, Homeopath, Chiropodist/Podiatrist
-Your level of cover is £1,000 per policy year with up to a maximum of 6 referals from your GP

Choice 2: Psychiatric Care
-Full In-patient cover up to a maximum of £10,000 a year
-Outpatient cover £1,500 each policy year with an excess of £100 per claim

Choice 3: Rehabilitation Benefits
-Home Nursing - full cover for 28 days
-Recuperative Care - Up to £1,000 per claim
-Specialist second opinions - 1 per claim

There is a compulsory £100 excess per person per claim although you can increase your excess in order to reduce your monthly premiums.

Exclusions to the Policy
-Dental Treatment
-Accident and Emergeny
-Pregnancy and infertility
-Treatment for chronic conditions
-GP consultations
-Drug, solvent and alcohol abuse
-HIV/AIDS
-Cosmetic surgery

Examples of Costs
32 year old non-smoking man or woman - £33.52
42 year old non-smoking man or woman - £45.83
52 year old non-smoking man or woman - £63.70

These costs were taken from comparison site moneysupermarket.com and do not include the add-on options. They were the cheapest medical insurance policy prices when compared to others on the site.

People Happier with NHS

According to the latest British Social Attitudes report people have never been happier with the NHS. So what does this mean for the medical health insurance business? Does it mean that the consumer is less likely to take out private health insurance? And are there options which combine NHS care with private health care?

The report, conducted by the National Centre for Social Research, found that people are the happiest they have been with the NHS since 1984. When asked the question: And how satisfied or dissatisfied are you with the NHS as regards being in hospital as an in-patient? 46% answered that they were either 'very' satisfied or 'quite' satisfied. The similar levels of satisfaction applied to people's experience of the care of children and young people in the NHS.

However, even though there is a higher level of satisfaction this still means that there is a high proportion of people who are not happy. 18% of people surveyed said they were either 'quite' dissatisfied or 'very' dissatisfied with the NHS. It is interesting to note that this figure is close to the 12% of Britons who have private medical insurance.

The ABI has reported that they are not seeing a decrease in the number of people taking out medical insurance but that they are seeing people reducing the level of their cover. This appears to be related to the current economic situation rather than any other factor. Additionally recent survey's by BUPA show that the main reason people turn to the private health insurance sector is that they have concerns over NHS levels of cleanliness and the risk this poses of catching superbugs.

There are a couple of private health cover options available which capitalise on the improvements in the NHS:

The Six Week Option
This is where you only use your health insurance policy if you have to wait more than six weeks in the NHS. One of the reasons that people are happier with the NHS is that waiting lists have been cut down since 2004. The target set by the NHS is 18 weeks. However this is still a long time to wait if you are unwell and distressed. There are several companies that offer you a reduced premium if you are prepared to wait six weeks to see if you can be treated by the NHS in that time. Standard Life Healthcare for example, offers this in both of their EspritHealtcare plans and provide a 10% reduction in your premium if you take up this option.

Freedom Healthnet Ltd
Freedom offers an excellent alternative to traditional health insurance policies. They give you, in many cases, very cheap health insurance cover and in return you get paid in cash should you fall ill. This leaves you with a great amount of freedom. If you are perfectly happy to be treated on the NHS then you are free to use the cash for anything else that you choose.

Age Discrimination From Health Insurance Companies?

Last month Health Insurance News looked at the very large premiums that older people have to pay in order to obtain private medical insurance. This week the Telegraph reported that people are speaking up about the unfairness of this situation.

Director General of Age Concern, Gordon Lisham said that insurers offer 'unreasonable and disproportionate hikes in premiums that appear to be unrelated to any increase in underlying risk.' As reported in Health Insurance News some people over 80 are not even covered at all by some medical insurance companies. According to Mr Lisham three quarters of medical insurance providers will not cover people over the age of 70.

The industry however suggests that the reasons that premiums are higher, in particular for people over 70 is because they do have a much higher risk of ill health and that the premiums need to reflect this. Malcolm Tarling, from the Association of British Insurers comments that, "age is obviously relevant when it comes to the amount of claims people will make."

Women also make more health claims than men by as much as 80% in some age categories but the premiums do not reflect this risk. Women do pay a little more for their health insurance with some companies but the risk seems to be spread across the age ranges. Most companies who do vary their rates only charge women an average of 5% more for their premiums across all age groups. So why does this not happen in relation to age?

The fact of the matter is that this would probably affect insurers adversely as premiums would have to increase considerably across the board and the average person might be put off buying private medical insurance. As the years move on and the ageing population increases premiums would have to increase further to reflect this. Still, if insurance is there to cover us in times of need it seems a shame that those potentially most in need are not able to afford the premiums or even able to get the cover. In fact as the ageing polulation increases this is an issue which health insurance companies will need to tackle.

Renew Your EHIC Card

Many British travellers now make sure they have a European Health Insurance Card (EHIC) when they travel. This card enables you to receive free or reduced cost medical treatment in all European Area Countries and Switzerland. However, some people do not realise that there is an expiry date on the card and that they need to apply to renew it.

According the direct.gov.co.uk currently 28 million UK citizens have an EHIC, but three million of these will have expired by the end of March 2009. Travel companies have reported that less and less people are taking out travel insurance in a bid to save the pennies and they are relying on their EHIC cards to pay cover them for ill health abroad.

Martin Lewis, consumer champion, says, 'Everyone travelling to Europe should ensure they've got an EHIC. It's a no-brainer. It's totally free, and entitles you to the same treatment in any EU or Swiss hospital as a local would get, at the same price. So if they would get free or discounted medical cover so do you.

It's not exactly arduous either. It only takes a couple of minutes to get one, or renew it if you're one of the worryingly large number of people who are letting old cards lapse - and it's hugely valuable free, added protection.

Though don't see it as an alternative to travel insurance, as it doesn't provide baggage cover, cancellation cover, and you may need to pay some costs, but it's a strong addition to it."

There are different rules that apply to each country however and it is important to check when you are travelling so that you are clear what you need to do if you fall ill abroad. Health Insurance News UK explains some of the pitfalls that you may experience.

The general rule is that it is better to have comprehensive travel insurance before you travel, however failing that the EHIC is essential and also useful even if you have travel insurance. Churchill, insist on policy holders having an EHIC card and as a benefit waive card holder’s excess.

Finally, it is possible to get health insurance abroad with some medical health insurance policies. For example, in the Standard Life, Prime Care Plus policy you will benefit from World Wide Travel cover for up to 90 days in any one year whether you are travelling for business or pleasure.

Health Insurance Lies

With recession affecting many, either physically or psychologically, it might be tempting to some to try and cut their health insurance premiums by lying about their health and lifestyle. Lying however would be a false economy. If your medical insurance company find out about any deliberate deception it will invalidate any claim and your whole policy will be revoked.

The Association of British Insurers (ABI) claims that lying on application forms for all insurance is on the increase and that this affects everyone because if forces premiums to go up across the board. Nick Starling, director of general insurance at the ABI, said that most applicants are honest but that lying caused the average yearly premium to go up by £30.

For health insurance the common lies are for people to hide whether they smoke or drink and to what extent they do so. Nick Starling said that, 'honesty is the only policy. Cheating to get cheaper insurance puts your cover in jeopardy, with potentially disastrous consequences.' There are also reports that companies are checking up with GP's about the veracity of your answers on your application form but it is also important to note here that your records cannot be accessed by an insurance company without your written consent.

The safest option is to be very upfront and shop around to get the best medical insurance for you and just be honest. Nick Starling says, 'Being truthful and shopping around will mean that your insurance delivers when you need it, and that you get the best possible deal.'

4 Ways to Cut Medical Insurance Costs

We are all looking to cut out outgoings at the moment as the cost of living has increased. At the same time it is good to think that we can still have the same standard of living and security that we have always enjoyed. When it comes to health cover there are five main areas where we can save money but still enjoy the best medical insurance.

1) The six week option
The private health market has schemes available that will pay for your treatment if you have to wait more than six weeks on the NHS. Standard Life Healthcare for example, offers this in both of their EspritHealtcare plans and provide a 10% reduction in your premium if you take up this option.

2) Excess
Most companies offer you reduced premiums if you pay a certain amount for each claim and the premiums will go down the greater the excess. Excesses can start from £100 and go up to £5,000. XS Health offers a comprehensive health insurance policy and there is a choice £1,500, £3,000 or £5,000 excess to pay. Premiums are as low as £55.83 a year and once your treatment costs get higher than your excess you have unlimited cover for a full year before you have to pay any more excess. This policy allows you to budget to your excess with the security that you will never need to pay more than this.

3) Specific policies
Policies that are very specific are often cheaper than general ones that are designed to cover a wide range of people and conditions. Examples of this are Retirement, students, Heart and Cancer, policies just for children. AXA PPP Healthcare has a policy for which is aimed at 65 and overs which just covers you for accidents and falls. If you fall into one of the categories that these specific policies cover then you may be able to obtain cheaper health insurance.

4) Choose the cheapest insurance
Recent price comparisons show that Freedom Healthnet are providing consistently cheap health insurance for a whole range of people both in the business and individual markets. Other than providing you with good value for money Freedom also give you the cash that you need for your treatments. This means that you can negotiate cheaper prices with private hospitals and keep any money that you have left over to spend as you please. So you could end up with money in your pocket.

Consumers Report Confusion When Purchasing Private Medical Insurance

What we as consumers are looking for is simply the best medical insurance that we can afford. It sounds very simple but is it easy to achieve?

The private medical insurance market is huge. There are many companies offering us various levels of cover and there are many different ways in which we can make our purchases. Recent evidence suggests that the process of searching and finding the right policy is far from straightforward for the average consumer.

Recently CS Healthcare conducted a survey of 1,000 UK adults who currently have private medical insurance. 60% of them said that they had been moderately or really confused when buying health cover. The main reason given for this was that there were so many products available. 36% of respondents said that they in fact purchased from the first provider they came across (a great incentive for companies to invest in high visibility marketing!)

More disturbingly 70% of respondents said they would think twice about claiming off their policy if it meant losing their No Claims Discount. Medical insurance is designed to cover people in times of ill health but this evidence suggests that worrying about increases in premiums is deterring them from seeking appropriate care.

CS Healthcare is a health insurance specialist for those who work or have worked for the civil service, the public sector, charitable or not-for-profit organisations.

Can Taking Out Health Cover Improve Your Wellbeing?

The PruHealth Vitality Index, published on the 9th November, found that there is a huge gap between people's perception of what it means to be healthy and the reality of the impact of lifestyle, diet and fitness levels on our health. The report also published statistics that suggest that the best medical insurance cover would promote wellbeing with 81% of the participants agreeing that it is important for "medical insurers to help members manage and improve health."

With such a gap in the public perception of their health and the reality, what pro-active help can you expect from your provider when you take out health cover?

Pru-Health actively encourages you to look after your health via their Vitality programme which is designed to promote 'an active lifestyle and improve your health'. They have a range of incentives including a personal Health Review which assesses your needs and encourages you to stop smoking, get regular health screens as well as to exercise and eat well. You can collect points for taking preventative measures, including participating in regular exercise (at reduced cost through fitness companies Cannon, La Fitness and Virgin Active) and the more points you get the lower your premiums go. You can even get extra points for buying fresh fruit and veg at Sainsbury's!

Norwich Union have an online Health Planner which assesses your health and lifestyle and provides guidelines to improvements in diet and exercise. They are also trying to cater for psychological wellbeing by providing a Stress Counselling Helpline where experienced counsellors are available 24/7. They also have a Stress Free Living Guide and the Guide to Services for a Healthy Mind. With all the evidence there is to suggest that the health of the mind and body are linked, this focus on mental health shows a very progressive attitude to overall wellbeing. Additionally, through their medical insurance you can also have access to 40% reduction on membership to a range of UK health clubs.

Standard Life offer a Healthy Reward Service which includes a tailor-made online Health and Well-being report which will advise you on changes that you need to make in the following areas: sleep, nutrition, exercise and stress. To support this they also offer a telephone counselling services. They also offer a discount on health screens with Nuffield Proactive Health.

So, if you are looking for incentives to stay healthy and improve your wellbeing, the company which seems to provide the best health insurance cover is Pru-Health as it offers you reduced premiums if you do actively pursue a healthier lifestyle. They put their money where their mouth is!

If you are looking for an overview of wellbeing and would like some tips on improving your health there is a very useful free download produced by the Health Insurance and Protection Magazine.

Beginner's Guide to Private Health Insurance

This blog aims to answer some questions for people who are considering taking out a private health insurance policy.

What is Private Medical Insurance?
Usually private medical insurance covers the costs of the private medical treatment of acute conditions that start after your policy begins. 'Acute' refers to conditions that are short term.

Why would it benefit me to take out Private Medical Insurance?
There are many reasons why people choose to take out medical insurance:
A desire to be treated quickly and have more time with specialists
To increase their choices: which hospital they go to and which specialists they are seen by
A concern for the high rates of MRSI and other superbugs within NHS environments
A desire to be treated in a more comfortable and private environment

How do I choose which Insurance Company to go with?
Research is key to this in order to find the right policy for you. Private medical insurance is sold in three different ways:
Directly from the insurance companies
Through independent advisors
Through agents (bank, building society or retail outlet, such as a supermarket)

It is important for consumers to look carefully at all policy documents before making a decision. Independent advisors will search for the best policy for you but if you are dealing directly with an insurance company, it is important to be aware that they can only advise you on the best health insurance policy for you from within their own portfolio.

How do I know if I am dealing with a reputable company?
The FSA (Financial Services Authority) is the regulatory body for all UK Insurance Companies. They 'regulate financial services and protect your rights' so if you have any concerns with an insurance company you can contact the FSA for advice.

What will happen when I take out my medical insurance?
Insurance companies do not cover you for any medical condition that you have at the time of taking out the policy, so it is very important to be honest about your medical health because if you later make a claim and your insurance company discovers that you did not disclose everything, your insurance will become null and void.

When you are taking out your policy you will find that companies work in one of two ways:
Full Medical Underwriting where they ask you a series of detailed questions about your medical history.
Moratorium Underwriting where they do not ask details of your medical history but will check your details with your GP should you make a claim.

You will receive a full policy document from your insurer which you are advised to read carefully.


What will be covered?
This varies from policy to policy, and it is important for you to choose the best medical insurance for you. A broker can help you to compare medical insurance policies. Some questions to think about:
How much can you afford to pay each month? What level of cover would you like? Do you want your insurance to cover all treatment costs or would you be willing to part pay? Do you want your cover to include diagnostic tests? Do you want outpatient cover?

What will not be covered?
Generally, private medical insurance is not designed to cover long term treatment or chronic conditions. This list of exclusions is taken from the ABI's consumer guidelines.*

• Going to a general practitioner (GP)
• Going to Accident and Emergency
• Drug abuse
• HIV/AIDS
• Normal pregnancy
• Gender reassignment (sex change)
• Mobility aids, such as wheelchairs
• Organ transplant
• Injuries you get from dangerous hobbies (often called hazardous pursuits)
• Conditions you had before taking out the insurance (commonly known as pre-existing conditions)
• Dental services
• Outpatient drugs and dressings
• Deliberately self-inflicted injuries
• Infertility
• Cosmetic treatment
• Experimental or unproven treatment or drugs
• Kidney dialysis
• War risks


How much will it cost?
The cost depends on the kind of medical insurance cover that you choose. It is advisable to research the costs of a range of treatments and then carefully compare health insurance policies.

If I change my mind, can I cancel the policy?
You have the right to change your mind, and have your money back within a set period (usually 14-30 days) after purchasing your medical insurance.

*For further Information
The Association of British Insurers represents the interests of the UK's insurance industry and has published a comprehensive consumer guide for people who are looking to buy private medical insurance.